As Chicago moves into Phase 4 of reopening, many are wondering how COVID-19 has impacted the real estate market, and how it could continue to do so moving forward. So is real estate recovering from COVID-19? One survey by the National Association of REALTORS® proposes it is. Here are some of the highlights:
The technology innovations made during quarantine and shelter-in-place orders isn’t going anywhere. More than 60% of survey respondents expect the demand for Zoom and video technology, virtual tours, live virtual tours and virtual open houses will all increase. Even with new ways to view homes from afar, prospective buyers still value in-person showings. 74% of respondents reported that all buyers wanted to see things in-person before buying. So though technology is here to stay, it’s unlikely it will ever be a full replacement for in-person showings.
What Buyers Want
Despite the uncertainty of the last few months, buyers seem to be consistent in their home criteria. The survey respondents reported that the majority (at least over 50%) of their clients had no change in demand for features like location, home type, commuting needs, and timeline. A small percentage noted increased demands for in-home features like an office space, more square footage, a yard for growing produce and space for exercising. Considering the quarantine fatigue many have experienced, it’s no wonder buyers may be searching for more accommodating space.
Points of Urgency
For buyers who sped up their timeline due to COVID-19, there were a few points of urgency pushing them forward. 39% of respondents noted that their clients who stalled during the pandemic now very much need a new home. Other reasons to hurry included realizing the benefits of new home features, wanting to buy before a potential second peak, being tired of their current home or wanting to get out of the city. Buyers also took note of low interest rates and low inventory.
Ultimately, it’s great that many agents are confident in a solid bounce-back from the pandemic. While recovery is in process, there’s always the possibility of the market slowing down again, especially if there is a new wave of cases or due to the election this fall. If you’re unsure how to navigate the real estate market as it recovers from COVID-19, feel free to reach out to someone from our team.
Photo from 2335 N. Southport Avenue